BRISBANE, Calif. and LOS GATOS, Calif., May 19 /PRNewswire-FirstCall/ --
Wal-Mart (NYSE: WMT) and Netflix (Nasdaq: NFLX) today announced a joint
promotional agreement covering their core online movie businesses --
Walmart.com's movie sales and Netflix's DVD movie rentals. Now, these two
online retail companies, each with strong, complementary expertise in online
movie services, are engaging in a promotional arrangement to market one
another's key movie business at their respective websites.
As movie sales at Walmart.com continue to accelerate, the company is
strengthening its commitment to this core business, and as a result, is
discontinuing the Wal-Mart DVD Rentals service. Walmart.com's existing DVD
Rentals customers will be offered the option to become Netflix subscribers at
their current Wal-Mart rate for one year from the date they sign-up. Via its
website (http://www.walmart.com/movies ), Walmart.com will also promote and
refer customers interested in online DVD rentals to Netflix.
In return, Netflix will promote Wal-Mart's online movie sales business,
including the pre-order price guarantee option at Walmart.com, both at its
website (http://www.netflix.com ) and in mailers sent to Netflix subscribers.
The pre-order price guarantee ensures customers the lowest available price on
pre-order movies.
"We've experienced tremendous growth in our online movie sales, and are
committed to enhancing our focus in this business at Walmart.com. We're
equally excited to team with Netflix, the pioneer of online movie rentals,
which not only distinguishes both of our core online competencies, but offers
a complementary solution of value, service, and convenience to customers,"
said John Fleming, Wal-Mart's executive vice president and chief marketing
officer who also oversees Walmart.com at the executive level.
Added Netflix co-founder and CEO Reed Hastings, "This agreement bolsters
both Netflix's leadership in DVD movie rentals and Wal-Mart's strong movie
sales business, while providing customers even more choices and convenience.
Both companies will continue to expand their respective leads in providing the
best in movie entertainment to millions of online customers."
About Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood
Markets and SAM'S CLUB locations in the United States. Internationally, the
company operates in Argentina, Brazil, Canada, China, Germany, Japan, Mexico,
Puerto Rico, South Korea and the United Kingdom. The company's securities are
listed on the New York and Pacific stock exchanges under the symbol WMT. More
information about Wal-Mart can be found by visiting
http://www.walmartfacts.com . Online merchandise sales are available at
http://www.walmart.com .
About Netflix
Netflix is the world's largest online movie rental service, providing more
than three million subscribers access to over 40,000 DVD titles. Under the
company's most popular program, for $17.99 a month, Netflix subscribers rent
as many DVDs as they want and keep them as long as they want, with three
movies out at a time. There are no due dates, no late fees and no shipping
fees. DVDs are delivered for free by the USPS from regional shipping centers
located throughout the United States. Netflix can reach nearly 90 percent of
its subscribers with generally one business-day delivery. Netflix offers
personalized movie recommendations to its members and has more than
500 million movie ratings. Netflix also allows members to share and recommend
movies to one another through its Friends(TM) feature. For more information,
visit http://www.netflix.com .
Forward-Looking Statements
This press release contains certain forward-looking statements, including
statements regarding customer referrals to the Netflix service, promotional
undertakings, and the expanding lead in movie entertainment. The forward
looking statements in this release are subject to risks and uncertainties that
could cause actual results and events to differ, including, without
limitation, the willingness of existing Wal-Mart DVD rental subscribers to
transfer their subscription to Netflix, the limited number of subscribers
eligible to transfer, the limited nature of Netflix's promotional
undertakings, the ability of Netflix to attract new subscribers and retain
existing subscribers, and impacts arising from competition. A detailed
discussion of these and other risks and uncertainties that could cause events
to differ materially from such forward-looking statements as they relate to
Netflix is included in Netflix's filings with the Securities and Exchange
Commission, including our Annual report on Form 10-K filed with the Securities
and Exchange Commission on March 15, 2005. Netflix undertakes no obligation
to update forward-looking statements to reflect events or circumstances
occurring after the date of this press release.